length of time between bank examinations affects thequality of information available to supervisors. For thesepurposes, we … condition of a bank. Our analysisassumes that examination information incorporates twotypes of data: information available from … information that can be obtained onlythrough on-site examinations, such as confidential informationabout a bank’s troubled assets …

, centralbanks have made extensive use of both new and existing toolsfor supplying central bank money to financial institutions …

While systemic risk—the risk of wholesale failure of banksand other financial institutions—is generally consideredto be … the primary reason for supervision and regulation of thebanking industry, almost all regulatory rules treat such risk … inisolation. In particular, they do not account for the very featuresthat create systemic risk in the first place, such as …

modelof the behavior of parties, which for simplicity we refer to asbanks. Each bank has particular motivations and …

bankingindustry. This goal is served by taking a broad view of thepayments business and analyzing information provided bylarge bank …